8th Pay Commission set to reshape salaries and pensions, notification likely next month

The central government is in the final stages of setting up the 8th Pay Commission, with its terms of reference expected to be sent for cabinet approval by early next month. Once the cabinet clears the proposal, an official notification will follow, paving the way for the commission to begin its operations in April 2025, a senior government official repotedly said.

The Finance Ministry has reached out to key departments, including the Ministry of Defence, Ministry of Home Affairs, and the Department of Personnel and Training (DoPT), seeking their inputs on the areas that the commission should focus on while making its recommendations.

"A few suggestions have already been received, and we are awaiting inputs from the remaining departments. Once the Cabinet gives its approval, the commission will be formally notified," the official added.

The 8th Pay Commission is expected to play a crucial role in revising salaries, allowances, and pensions for central government employees and pensioners. Historically, the government has set up a new Pay Commission every 10 years, with the Seventh Pay Commission having been implemented in 2016.

With rising inflation and cost of living, employee unions have been actively demanding the formation of the next Pay Commission to ensure a fair wage revision. The commission's recommendations, once implemented, could have a significant impact on government expenditure and overall economic conditions.